Bitcoin Slides Below $78,000 as Fed Uncertainty and Thin Liquidity Rattle Bulls

If you’re looking for a weekend where Bitcoin bulls finally blinked, this was it. The world’s largest digital asset, which spent most of January taunting gravity, finally lost its grip and tumbled below $78,000. That’s not just a round number—it's a psychological tripwire, the kind that makes even the most diamond-handed traders reach for the TUMS. The selloff, which began as a trickle on Friday, turned into a full-blown rout by Saturday night as thin weekend liquidity collided with a fresh dose of macro anxiety.

The catalyst? President Trump’s nomination of Kevin Warsh as the next Fed Chair, a move that sent risk assets scrambling for cover. Bitcoin, which has been increasingly sensitive to macro crosswinds, didn’t stand a chance. By Sunday, the headlines were everywhere: “Bitcoin Slides Below $78K as Bearish Signals Mount and Traders Brace for Deeper Correction” (tokenpost.com, 2026-02-01). The tape tells the story. $BTC crashed through $80,000 support, then $78,000, triggering a cascade of stops and margin calls. The weekend’s low? Just a hair above $77,500, a level not seen since April.

The carnage wasn’t limited to Bitcoin. Ethereum, XRP, and the entire memecoin complex followed suit, with BONK dropping a cartoonish 18%. But Bitcoin’s underperformance against gold is what really has the macro crowd talking. As Benzinga notes, “BTC’s Underperformance Against Gold ‘Tremendous Opportunity’ To Scale In” (2026-02-01). The implication: either Bitcoin is broken, or it’s setting up for a classic mean reversion play.

Zoom out, and the macro backdrop is a mess. Treasury issuance is draining liquidity from every corner of the market. The Treasury General Account (TGA) just sucked $64.3 billion out of the system (SeekingAlpha, 2026-02-01). Meanwhile, Asian currencies are jittery as traders digest the Warsh nomination. The dollar is flexing, risk assets are sweating, and Bitcoin is stuck in the crossfire.

This isn’t just about one bad weekend. It’s about a market that’s lost its nerve. The narrative that Bitcoin is a “digital gold” hedge is wearing thin. When real gold rallies and Bitcoin dumps, you know the correlation trade is breaking down. The question is whether this is a temporary liquidity event or a sign of deeper structural weakness.

The technicals aren’t pretty. The 50-day moving average, which had been quietly climbing, is now flatlining. RSI is oversold, but not in a way that inspires confidence—think knife-catching, not value hunting. Volume is anemic, especially on the buy side. The bulls are missing in action, as Jim Cramer helpfully pointed out: “Where Are Bitcoin Bulls? Jim Cramer Questions Absence as BTC Struggles Below $80K” (news.bitcoin.com, 2026-02-01).

Strykr Watch

Here’s what matters for the next 48 hours. $BTC needs to reclaim $80,000—fast. The next major support sits at $75,000, with a potential air pocket down to $70,000 if that breaks. Resistance is stacked at $81,500 and $84,000. The 200-day moving average is lurking at $73,800, and if we get there, expect the algos to wake up. RSI is at 34, flirting with oversold territory, but don’t expect a heroic bounce unless we see real volume. The Strykr Score on volatility is a punchy 85/100—this is not the time for sleepy positioning.

The risks are obvious. If the Fed signals a hawkish tilt with Warsh at the helm, risk assets could see another leg down. A break below $75,000 would invalidate most bullish setups and could trigger a cascade of forced liquidations. On the flip side, if Bitcoin can stage a quick reclaim of $80,000, the squeeze could be violent. But until then, the path of least resistance is lower.

For traders with a taste for pain, this is the kind of environment where fortunes are made—or lost. The opportunity? Scale in with tight stops below $75,000, target a snap-back rally to $84,000 if the macro winds shift. But don’t get cute. This is a market that punishes hubris.

Strykr Take

This is not the time to play hero. Bitcoin is in the penalty box, and until we see a decisive reclaim of $80,000, the risk is skewed to the downside. The Warsh nomination is a wildcard, and liquidity is a mirage. If you must trade, keep it tight, keep it small, and respect your stops. The next move will be fast—and unforgiving.